Stock market extends fall: 3 reasons why Sensex fell nearly 400 points today

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Published: January 3, 2019 4:59:37 PM

Extending the fall, the domestic stock markets – Sensex and Nifty – ended lower Thursday amid weak global cues amid concerns over the fiscal impact of the proposed package to woo farmers ahead of the general elections.

sensex, rbiA sudden sell-off on Wall Street, following cut by Apple Inc in its revenue forecast for the first time in 2 years, triggered Asian and European equities to react in the same fashion.

Extending the fall, the domestic stock markets – Sensex and Nifty – ended lower Thursday amid  weak global cues amid concerns over the fiscal impact of the proposed package to woo farmers ahead of the general elections. The bluechip heavyweights including RIL and TCS dragged the index as 30-share index Sensex closed 377.81 points down to 35,513.71, while the Nifty 50 closed below the 10,700-mark.

3 key reasons behind today’s stock market fall:

1)A sudden sell-off on Wall Street, following cut by Apple Inc in its revenue forecast for the first time in 2 years, triggered Asian and European equities to react in the same fashion. It also had an impact on the domestic stock markets, experts say.

Also read: Share market LIVE updates: Sensex extends losses, Nifty near 10,700; ONGC, M&M shares down up to 3%

2) The market traded with a weak mood as the reports said the Modi government was mulling direct transfers worth Rs 4,000 an acre per season for farmers, among other incentives, which will likely have a substantial financial implication on the exchequer.

3) The market was also subdued as ahead of the corporate earnings are scheduled to start next week, traders told PTI. The heavy selling by foreign as well as domestic funds weighed on local equities, PTI said.

RIL share price plunged by more than 1.4 per cent to Rs 1,090.10, while TCS shares ended 1.15 per cent lower at Rs 1,919 on BSE. M&M shares plunged by more than 1.9 per cent to hit the day’s low at Rs 727.15. ONGC share price tanked by 3.16 per cent to Rs 142.40 on NSE.

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